ANNUAL REPORT 2014
63
NOTES TO THE
FINANCIAL STATEMENTS
2.
Significant accounting policies (continued)
(n) Revenue and other income (continued)
(ii) Services
Revenue from services rendered is recognised in profit or loss as and when the services are
performed.
(iii) Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over
the term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease.
(iv) Dividend income
Dividend income is recognised in profit or loss on the date that the Group’s or the Company’s right to
receive payment is established.
(v) Interest income
Interest income is recognised as it accrues using the effective interest method in profit or loss.
(o) Borrowing costs
Borrowing costs that are not directly attributable to the acquisition, construction or production of a
qualifying asset are recognised in profit or loss using the effective interest method.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are capitalised as part of the cost of those assets.
(p) Income tax
Income tax expense comprises current and deferred tax. Current tax and deferred tax is recognised
in profit or loss except to the extent that it relates to items recognised directly in equity or other
comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using
tax rates enacted or substantively enacted by the end of the reporting period, and any adjustment to tax
payable in respect of previous financial years.
Deferred tax is recognised using the liability method, providing for temporary differences between the
carrying amounts of assets and liabilities in the statement of financial position and their tax bases. Deferred
tax is not recognised for following temporary differences: the initial recognition of assets or liabilities in
a transaction that is not a business combination and that affects neither accounting nor taxable profit or
loss. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences
when they reverse, based on the laws that have been enacted or substantively enacted by the end of the
reporting period.
Where investment properties are carried at their fair value in accordance with the accounting policy set out
in Note 2(g), the amount of deferred tax recognised is measured using the tax rates that would apply on
sale of those assets at their carrying value at the reporting date unless the property is depreciable and is
held with the objective to consume substantially all of the economic benefits embodied in the property over
time, rather than through sale. In all other cases, the amount of deferred tax recognised is measured based
on the expected manner of realisation or settlement of the carrying amount of the assets and liabilities,
using tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are
not discounted.
